Announcement PDF Half Year Report 30 June 2023 CORPORATE DIRECTORY Directors MH Stirzaker PG Bibby MD Gill JM Madden Non-Executive Chairman Managing Director and Chief Executive Officer Non-Executive Director (appointed 2 August 2023) Executive Director and Company Secretary Company Secretary JM Madden Registered office 211 McIlwraith Street Princes Hill Victoria 3054 Postal address PO Box 337 Carlton North Victoria 3054 Telephone 61-3-9381 0859 Website www.akoravy.com Share registry Link Market Services Tower 4, 727 Collins Street Melbourne Victoria Australia 6000 Telephone 1300 554 474 Corporate Advisor Harbury Advisors Pty Ltd Level 5, 157 Collins Street Melbourne Victoria Australia Auditor Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA Australia Solicitors CBW Partners Level 1 159 Dorcas Street South Melbourne Victoria JW Ffooks & Co 1st Floor Immeuble Assist Ivandry Antananarivo Madagascar CONTENTS Directors’ report 2 Auditor’s independence declaration 8 Condensed consolidated statement of profit or loss and other comprehensive income 9 Condensed consolidated statement of financial position 10 Condensed consolidated statement of changes in equity 11 Condensed consolidated statement of cash flows 12 Notes to the financial statements 13 Directors’ declaration 22 Independent auditor’s review report 23 Page 1 DIRECTORS’ REPORT The directors present their report, together with the financial statements of AKORA Resources Limited (ACN 139 847 555) (hereafter referred to as the “Company”), for the half-year ended 30 June 2023. Principal Activities The principal activities of the Company during the half-year were exploration for iron ore in Madagascar. The Company holds 100% equity in two Malagasy entities; Iron Ore Corporation of Madagascar sarl (IOCM) and Universal Exploration Madagascar sarl (UEM). IOCM holds the Bekisopa iron ore tenements and UEM holds the Tratramarina iron ore tenements. In addition, the Company has earned a 100% equity interest in the commodities discovered at the Ambodilafa tenements pursuant to the Jubilee/AKORA Ambodilafa Farm-in Agreement. The Company focused on advancing the Bekisopa iron tenements during the first-half of the financial year. Operating Results, Review of Operations for the Year and Significant Changes in State of Affairs The net loss after tax is $926,517 for the half-year ended 30 June 2023 (the net loss after tax for the previous half-year was $674,184). The Company recorded a charge during the half-year of $164,953 as a result of the accounting treatment for the cancellation of options over ordinary shares previously issued to management under AASB 2 Share-based Payments. Under this accounting standard the Company was required to accelerate the unamortised fair value of options (the amount referred to above) to the statement of profit or loss and other comprehensive income. The charge is a non-cash charge and has no impact on cash balances and the statement of financial position. On 1 May 2023, the Company advised shareholders that it had undertaken a Share Placement that raised $793,000 through the issue of 4,956,250 fully paid ordinary shares at 16 cents per ordinary share with 2,478,125 accompanying free-attaching options over ordinary shares at an exercise price of 25 cents and expiry date being 25 May 2026. The Company simultaneously announced an Entitlement and Shortfall Offers which closed on the 25 May 2023. Under the Entitlement and Shortfall Offers the Company issued 14,442,197 fully paid ordinary shares at 16 cents per fully paid ordinary share with proceeds of $2,310,751 and issued 7,221,088 freeattaching options over ordinary shares at an exercise price of 25 cents and expiry date being 25 May 2026. The Company also announced on 25 May 2023, a Share Placement which raised $475,182 through the placement of 3,394,157 fully paid ordinary shares at 14 cents per fully paid ordinary share. In total, the Company raised $3,578,933 and issued 22,792,604 fully paid ordinary shares and 9,699,213 options over ordinary shares at an exercise price of 25 cents per option over ordinary share with an expiry date of 25 May 2026. The total number of shares on issue following the capital raising is 94,982,814 fully paid ordinary shares. Activities during the first-half of the financial year Strategic direction The board of directors continue to pursue a strategic direction that will result in the Company developing a DSO project at Bekisopa whilst undertaking exploration at all Malagasy tenements. At this time, the board of directors believe there is potential for three products at Bekisopa. By selectively targeting the high-grade outcropping and high-grade weathered material using conventional shovel and truck operations, lump and fines products could be produced as direct shipping ore (DSO). (DSO refers to the fact that apart from simple mechanical processes such as crushing, screening, and blending, the iron ore is shipped in essentially the same form as that extracted from the ground with potential significant capital and operating cost advantages.) Although this DSO tonnage represents a small portion of the Mineral Resource, if achievable, the DSO tonne is clearly the best and fastest strategy to cash flows. The second and third products from Bekisopa are likely to be high-grade iron concentrates - fines and/or high-grade iron concentrate from the Mineral Resource making the second and third products.) The production of high-grade fines will require crushing fresh iron ore to a relatively coarse 75 microns to produce a premium-grade 67% or better iron concentrate. This concentrate would be an optimal feedstock for the production of Direct Reduced Iron (DRI) pellets. DRI is produced by the removal (reduction) of Page 2 DIRECTORS’ REPORT oxygen from iron ore using natural gas as the reducing agent instead of coal. Increased use of DRI is one of the key decarbonisation strategies of the global steel industry. Accordingly, during the first-half of the financial year, the Company: Bekisopa sampling and assaying The Company received the final assays for the 2022 DSO infill drilling campaign (see ASX Announcement on 22 March 2023). In total, the Company completed 1,166.4 metres during the fourth quarter of 2022 on a 50 metre by 50 metre grid. The drilling campaign involved 86 close-spaced drill holes which equated to 1,262 intervals for assaying, including QA/QC standards, blanks, and duplicates. The drill core intervals from across the eastern and western area of the Southern Zone, where high-grade iron mineralisation had previously been intersected during the 2020/2021 drilling campaigns. This outcome represents only ~12% of the known 6-kilometer strike length. Figure 1 Bekisopa 2022 DSO infill drill hole locations on the eastern and western sides of the Southern Zone H&S Consulting had previously stated there was a potential for a DSO Mineral Resource in the Southern Zone (see ASX Announcements dated 23 March 2022 and 11 April 2022) within the 110.2 million tonne Inferred Resource. WAI determined that within the 110.2 million tonne Inferred Resource identified by H&S Consulting, there is 5.5 million tonnes of Inferred and Indicated Resource at DSO grades. Further, WAI concluded that below the DSO mineralisation it had identified the potential for green steel mineralisation of 34 million tonnes. (Green steel mineralisation represents fresh rock capable of producing high-grade concentrate – average iron ore grades of 45.3% Fe with Davis Test Tube recoveries at 58% at 75 microns producing 68.7% iron concentrate). Page 3 DIRECTORS’ REPORT Figure 2 Very high-grade green steel area, averaging 45.3% iron suitable for upgrading to a DRI 68.8% iron concentrate for the Green Steel future. The remaining Mineral Resource (the H&S Consulting 110.2 million tonnes less the DSO Inferred and Indicated Resource and the green steel mineralisation) will also be capable of producing a high-grade concentrate. Figure 3 2022 DSO infill drill pad of drill hole BEKD092 showing outcropping iron mineralisation Page 4 DIRECTORS’ REPORT Figure 4 Drill core from drill hole BEKD092 High-grade DSO lump and fines iron ore product grading 66% Fe, from surface to 11.2 metres Replacement Mining Code On 7 June 2023 the replacement Mining Code was approved by the Malagasy Legislature. The replacement Mining Code was ruled by the High Constitutional Court to be consistent with the Constitution on 25 July 2023 and was promulgated by the President on 27 July 2023. The replacement Mining Code has not been gazetted as at the date of this report and the Implementation Rules are being drafted. The replacement Mining Code, along with the Implementation Rules, will provide the mechanism to enable the Bureau du Cadastre Minier du Madagascar (BCMM) to commence processing tenement renewals and tenement transformations as well as new applications. The replacement Mining Code has taken some years to be revised and as a result, the development of the Implementation Rules will require time to draft and approve and the significant backlog of tenement renewals and transformations to be processed may also impact the issuance of tenements. The Company has ensured throughout the period the BCMM did not process tenement renewals and transformations that all annual administration fees were paid. Accordingly, all the tenements held by the Company are in good standing which the government has determined to be a precondition for the process of renewals. The Extractive Industries Transparency Initiative (EITI) in Madagascar has also been upgraded under the technical supervision of the Ministry of Mines and Strategic Resources and financial supervision of the Ministry of Economics and Finance to ensure that Malagasy EITI meets global standards, improved transparency and accountability in the mining sector. Page 5 DIRECTORS’ REPORT The Company holds twelve tenements. It has ensured throughout the period the BCMM did not process tenement renewals and transformations that all annual administration fees were paid. Accordingly, all the tenements held by the Company are in good standing which the government has determined to be a precondition for the process of renewals. AKORA has three Permis Reservés aux Petits Exploitants (PRE), including PRE 3757, an extension to the main strike at Bekisopa tenement Permis du Recherche (PR) 10430, subject to issuance of transformation approval to be issued as PR and nine PR, including PR 10430 subject to issuance of renewals. Proposed work for second-half of the financial year The Company has commenced a 65-hole in-fill drilling programme at the Northern and Central Zones with the goal of replicating DSO mineralisation and potential for green steel mineralisation by the end of the second-half of the financial year. The Company proposes to conduct laboratory-based density studies for specific iron grades in the DSO mineralisation within the Southern Zone. The board of directors believes there is potential to increase the DSO Mineral Resource tonnage. Pure hematite (69.9% Fe) and magnetite (72.4% Fe) are 5.3 tonnes per cubic metre and 5.2 tonnes per cubic metre. Density for iron mineralisation grading between 58% Fe and 68% Fe should be 4 tonnes per cubic metre to 5 tonnes per cubic metre for competent unweathered rock. These densities are considerably higher than those used by WAI for the determination of the DSO Inferred and Indicated Mineral Resource. Field-based techniques are producing lower than expected density results. The Company has retained geophysical consultants to conduct an aero-magnetic survey of all its exploration ground in Madagascar – Ambodilafa, Bekisopa (including the Satrokala area) and Tratramarina – during the dry, clean sky months available until November. The Company has also retained WAI to undertake more detail infrastructure studies for the delivery of direct ship ore to port facilities as well as power and port infrastructure requirements. Consultants have been retained to conduct a preliminary community and environmental consultation and benchmarking study. Options over ordinary shares At as the date of this report, the unissued ordinary shares of the Company relating to options of ordinary shares are as follows: Award date Maturity 4 May 2023 25 May 2023 25 May 2026 25 May 2026 Exercise Price Options Number $0.2500 $0.2500 2,478,125 7,221,088 9,699,213 Events After Balance Date Following the completion of the half-year, the Company released on 11 July 2023 a revised Mineral Resource Estimate for the Southern Zone of the Bekisopa project. The replacement Mining Code was ruled by the High Constitutional Court to be consistent with the Constitution on 25 July 2023 and was promulgated by the President on 27 July 2023. On 2 August 2023, the Company announced the appointment of MR MD Gill as a non-executive director. Environmental Issues The Company's projects are subject to the laws and regulations regarding environmental matters in Madagascar. Many of the activities and operations of the Company cannot be carried out without prior approval from and compliance with all relevant authorities. The Company conducts its activities in an environmentally responsible manner and in accordance with all applicable laws. However, the company could be subject to liability due to risks inherent to its activities, such as accidental spills, leakages or other unforeseen circumstances. Page 6 DIRECTORS’ REPORT Information on Directors The following persons were the directors in office as at the date of this report: MH Stirzaker (Non-executive Chairman), appointed 22 August 2020 PG Bibby (Managing Director), appointed 9 July 2015 MD Gill Non-executive Director), appointed 2 August 2023 JM Madden (Executive Director and Company Secretary), appointed 6 October 2009 Proceedings on Behalf of Company The Company has no outstanding or pending litigation whether brought by the Company or brought against the Company by a third party. Non-Audit Services There were no non-audit services provided by the Company’s external auditor. Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 8. This report of the directors is signed in accordance with a resolution of the Board of Directors. MH Stirzaker Chairman Dated this 23 August 2023 Page 7 To the Board of Directors AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit Director for the review of the financial statements of Akora Resources Limited for the half year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and • any applicable code of professional conduct in relation to the review. Yours Faithfully, HALL CHADWICK WA AUDIT PTY LTD Dated this 23rd day of August 2023 Perth, Western Australia MARK DELAURENTIS CA Director CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME Half-Year Note Total revenue and other income Expenditure Administration costs Contractors and consultants Depreciation Employee costs Exchange fluctuation Investor relations Provisions Secretarial costs Share-based payments Travel Other Total expenditure 8 Profit/(loss) before tax for the half-year 30 June 2023 $ 30 June 2022 $ 448 24 (55,726) (238,764) (163,019) (153,688) (12,893) (89,461) (164,953) (48,191) (270) (926,965) (28,748) (181,518) (4,812) (212,489) (6,255) (56,431) (16,921) (39,350) (48,536) (75,939) (3,209) (674,208) (926,517) (674,184) - - (926,517) (674,184) (323,730) (1,000) (324,730) (321,276) (321,276) (1,251,247) (995,460) (1.200) (1.200) (1.030) (1.030) Income tax (expense)/benefit Net profit/(loss) after tax for the half-year Items that have been or may be subsequently reclassified to profit or loss Translation reserve Other movement Total comprehensive income/(loss) for the half-year Loss per share Basic earnings per share/cents Diluted earnings per share/cents 3 The accompanying notes form part of these financial statements Page 9 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note 30 June 2023 $ 31 December 2022 $ Assets Current assets Cash and cash equivalents Receivables Other Total current assets 5 3,109,503 26,899 2,331 3,138,733 721,766 16,822 2,316 740,904 6 8,983,264 8,983,264 12,121,997 8,890,924 8,890,924 9,631,828 Current liabilities Payables Provisions Total current liabilities 266,853 81,028 347,881 121,083 68,135 189,218 Total liabilities 347,881 189,218 11,774,116 9,442,610 31,602,923 (609,131) (19,219,676) 11,774,116 28,186,123 (242,072) (18,501,441) 9,442,610 Non-current assets Exploration and evaluation Total non-current assets Total assets Liabilities Net assets Equity Contributed equity Reserves Accumulated losses Total equity 7 The accompanying notes form part of these financial statements Page 10 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Note 19 Share Capital Note 21 Translation Reserve Share-based Payments Other Reserves Note 22 Accumulated Losses Equity Equity $ $ $ $ $ $ 24,786,898 (235,723) 350,464 26,710 (17,268,367) 7,659,982 Net loss for the period Other comprehensive income Total comprehensive income 3,221,277 (204,590) 206,100 3,222,787 - (321,276) (321,276) 48,536 48,536 - - (674,184) (674,184) 3,221,277 (204,590) 206,100 48,536 3,271,323 (674,184) (321,276) (995,460) As at 30 June 2022 28,009,685 (556,999) 399,000 26,710 (17,942,551) 9,935,845 As at 31 December 2022 Transactions with owners in their capacity as owners of the Company Share issues Equity raising costs Share-based payments Cancellation of share-based payments 28,186,123 (312,111) 43,329 26,710 (18,501,441) 9,442,610 Net loss for the period Other comprehensive income Total comprehensive income 3,578,933 (161,133) 3,417,800 (1,000) (1,000) (323,730) (323,730) 164,953 (208,282) (43,329) - - 208,282 208,282 (926,517) (926,517) 3,578,933 (161,133) 164,953 3,582,753 (926,517) (324,730) (1,251,247) As at 30 June 2023 31,602,923 (635,841) - 26,710 (19,636,240) 11,774,116 As at 31 December 2021 Transactions with owners in their capacity as owners of the Company Share issues Equity raising costs Exercise of options over ordinary shares Share-based payments The accompanying notes form part of these financial statements Page 11 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Half-Year Note 30 June 2023 $ 30 June 2022 $ Cash flows from/(used) in operating activities Payments to employees and suppliers Interest received Net cash flows from/(used) in operating activities (735,051) 448 (734,603) (784,244) 24 (784,220) Cash flows from/(used) in investing activities Exploration and evaluation expenditure Property plant and equipment Net cash flows from/(used) in investing activities (295,460) (295,460) (1,090,768) (1,090,768) Cash flows from financing activities Exercise of options over ordinary shares Share placement Cash outlays for share placement Net cash flows from/(used) in financing activities 3,578,933 (161,133) 3,417,800 206,100 3,221,277 (180,556) 3,246,821 2,387,737 1,371,833 721,766 - 1,045,851 (6,255) 3,109,503 2,411,429 Net cash flows Cash and cash equivalents as at the start of the financial period Exchange fluctuation Cash and cash equivalents as at the end of the financial period 5 The accompanying notes form part of these financial statements Page 12 NOTES TO THE FINANCIAL STATEMENTS Note 1 Corporate information The Financial Statements of AKORA Resources Limited (hereafter referred to as the “parent entity”) and its controlled entities comprising Malagasy Holdings (Tratramarina Pty Ltd and its controlled entity Universal Exploration Madagascar sarl) and Malagasy Holdings (Bekisopa) Pty Ltd and its controlled entity Iron Ore Corporation of Madagascar sarl) for the half-year ended 30 June 2023. The Financial Statements were authorised for issue in accordance with a resolution of the Board of Directors on 22 August 2023. The parent entity is as at the date of this Half Year Report a listed public entity limited by shares and incorporated in Australia. The principal activities of the parent entity are exploration for ferrous metals. Note 2(a) Basis of preparation and accounting policies Preparation The condensed financial statements have been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. The financial statements have been prepared on a going concern basis. The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2022 annual financial report for the financial year ended 31 December 2022, except for the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standard and with International Financial Reporting Standards. Statement of compliance The half-year financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. The interim financial report was issued on 23 August 2023 by the directors of the Company. The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Company as in the full financial report. It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 31 December 2022 and any public announcements made by Akora Resources Limited during the half-year. Going concern The Group recorded a net loss of $926,517 (2022: net loss of $674,184) and incurred cash outflows from operating and investing activities of $1,030,063 for the half-year ended 30 June 2023 (2022: $1,874,988). As at 30 June 2023, the Group had working capital of $2,790,852 (31 December 2022: $551,686). The Group is committed to conducting an infill drilling campaign to enhance its DSO Resource and completing a series of scoping studies at its Bekisopa project. Expenditure on exploration is inclusive of, but not limited to, those amounts identified in Note 6. In addition, the Group will incur Page 13 NOTES TO THE FINANCIAL STATEMENTS corporate costs associated with its on-going obligations as a listed entity on the ASX and its contractual obligations to executives. As at 30 June 2023, the Group has sufficient funds to implement its proposed plans and extinguish obligations as and when required for the next 12-months. Critical accounting estimates The preparation of the financial report requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial report are disclosed in this Note 2(a). Note 2(b) Principles of consolidation The consolidated financial statements comprise the financial statements of AKORA Resources Limited and its controlled entities as at and for the period ended 30 June each year (the Group). Controlled entities are those entities over which the Group has the power to govern the financial and operating policies to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a group controls another entity. The financial statements of the controlled entities are prepared for the same reporting period as the parent entity, using consistent accounting policies, in preparing and consolidated financial statements, all inter-parent entity balances, transactions, unrealised gains and losses resulting from the intra-group transactions have been eliminated in full. Controlled entities are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control is transferred out of the Group. Investments in controlled entities by AKORA Resources Limited are accounted for at cost in the separate financial statements of the parent entity less any impairment charges. The acquisition of controlled entities is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the entity acquired. The identifiable assets acquired, and the liabilities assumed are measured at their acquisition date fair values. The difference between the identifiable assets acquired less the liabilities assumed and the fair value of the consideration is goodwill or discount on acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measures based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. Page 14 NOTES TO THE FINANCIAL STATEMENTS Note 3 Loss per share for the half-year 2023 $ Note 4 2022 $ Loss from continuing operations for the half-year (926,517) (674,184) Weighted average number of ordinary shares outstanding during the half-year used in calculation of basic EPS 77,298,580 65,467,299 Basic and diluted loss per share (cents per share) (1.200) (1.030) Segment reporting The Group operates solely in the mining exploration industry. The Group determines operating segments by reference to internal reports that are reviewed and used by the executive management team, being the chief operating decision makers (CODMs) in assessing performance and determining the allocation of resources. Two CODMs have been identified – Australia and Madagascar. Page 15 NOTES TO THE FINANCIAL STATEMENTS For the half-year ended 30 June 2023 Australia Madagascar Total $ $ $ Segment revenue Segment result Amounts not included in segment results but reviewed by the boards: Expenses not directly allocable to identifiable segments Other Loss after income tax 448 - 448 (925,812) (435) (926,247) (270) (926,517) As at 30 June 2023 Segment assets 3,111,655 9,010,342 12,121,997 Segment liabilities 200,555 147,326 347,881 - 416,085 (323,745) 92,340 416,085 (323,745) 92,340 Segment asset increases for the period: Capital expenditure Exchange fluctuation Impairment of exploration assets For the half-year ended 30 June 2022 Segment revenue Segment result Amounts not included in segment results but reviewed by the boards: Expenses not directly allocable to identifiable segments Exchange fluctuation Share-based payments Other Loss after income tax Australia Madagascar Total $ $ $ 24 - 24 (602,039) (14,145) (616,184) (6,255) (48,536) (3,209) (674,184) As at 31 December 2022 Segment assets 693,953 8,937,875 9,631,828 Segment liabilities 189,218 - 189,218 - 1,732,875 (57,035) 1,675,840 1,732,875 (57,035) 1,675,840 Segment asset increases for the period: Capital expenditure Exchange fluctuation Impairment of exploration assets Page 16 NOTES TO THE FINANCIAL STATEMENTS Note 5 Cash and cash equivalents 30 June 2023 $ Cash at bank Note 6 3,109,503 31 December 2022 $ 721,766 Exploration and evaluation 30 June 2023 $ At start of financial year Additions Exchange fluctuation At end of financial year 31 December 2022 $ 8,890,924 416,085 (323,745) 8,983,264 7,215,084 1,732,875 (57,035) 8,890,924 1,480,929 6,806,493 695,842 8,983,264 1,919,496 6,411,376 560,052 8,890,924 The carrying value of exploration and evaluation expenditure at balance date is represented by the following projects: Ambodilafa Bekisopa Tratramarina Ambodilafa Farm-in Agreement On 22 August 2012, the Company entered into a Farm-in Agreement with Jubilee Platinum plc which entitled the Company to earn a 90% interest in commodities other than platinum group elements, London Metal exchange traded metals and chrome. Under the Farm-in Agreement, the Company will earn its interest in the commodities in three stages: - Stage 1 US$1.0 million expenditure Stage 2 US$1.0 million expenditure Stage 3 US$1.0 million expenditure 51% 81% (cumulative) 90% (cumulative) The Company is required to give notice to Jubilee each time it has expended US$1.0 million under the Farm-in Agreement. Jubilee has 30 days from the date of notice to inform the Company whether it wishes to tak